Ask a tax advisor on the topic of Real estate taxation

Apartment sale within 10 years

July 6, 2021 | 25,00 EUR | answered by Steuerberater Knut Christiansen

I want to sell my property.
Is this sale subject to tax?

I have lived in the property for 4 years and paid rent.
Now in the rental, I do not achieve any economic benefit - the rent goes to my mother (usufruct).

Details:

- 12/2013: Purchase of the already rented apartment by my mother
- 07/2015: Move in/ rent payment (me)
- 06/2018: Gift to me with usufruct to my mother
- 04/2019: I moved out/ rented to third parties

The property was not purchased with the intention of making a profit.
It was purchased so that I could live in it.
Due to a new family situation, I have moved to another city and have rented the apartment for now, but would like to sell it due to the distance.

Steuerberater Knut Christiansen

Good evening,

the sale would be subject to tax, as it has not been 10 years since the acquisition in 2013 and there has been no personal use by you in the year of the sale and the two preceding years. Any personal use by you in the meantime is unfortunately irrelevant. Therefore, the property can only be sold tax-free in December 2023, after the 10-year period has elapsed. The profit from the sale would be taxed at your personal tax rate, which is determined by your total income.

I hope this answers your question, if not, please feel free to contact me again.

Best regards,

Knut Christiansen
Tax advisor